If your limited liability company (LLC) sells physical products or certain types of services, you will need to collect and pay sales tax. In North Carolina, the first step is visiting the department of revenue website and registering for sales tax in order to acquire a seller’s permit, or sales tax permit.
What Products and Services Are Subject to Sales Tax in North Carolina?
Any tangible property that is sold, rented, or leased is subject to sales tax in North Carolina. Repair, maintenance, and installation services are also subject to sales tax. Prescription medicines, groceries, and gasoline are all exempt from sales tax.
North Carolina Sales Tax Rate
The sales tax rate in North Carolina is 4.75%.
Five states have no sales tax. Colorado has the lowest sales tax at 2.9%, while California has the highest rate at 7.25%.
How to Register for North Carolina Sales Tax
In North Carolina, acquire a seller’s permit by following the department of revenue’s detailed instructions for registration:
- Visit the North Carolina department of revenue e-services portal.
- Fill out the business registration form.
- There is no fee to register a business for sales tax purposes with the department of revenue in North Carolina.
Use our Sales Tax Calculator to calculate taxes and total purchase amount.
In North Carolina, and across the country, collecting sales tax is a must if you want to avoid potentially heavy fines and even closure. It’s crucial that you follow your state’s laws, and you might consider consulting with an accountant or tax attorney to make sure you’re in full compliance.